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Oracle (ORCL) Outpaces Stock Market Gains: What You Should Know

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Oracle (ORCL - Free Report) closed the most recent trading day at $124.49, moving +1.29% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.59%.

Heading into today, shares of the software maker had gained 5.51% over the past month, lagging the Computer and Technology sector's gain of 6.87% and outpacing the S&P 500's gain of 4.19% in that time.

The investment community will be paying close attention to the earnings performance of Oracle in its upcoming release. On that day, Oracle is projected to report earnings of $1.64 per share, which would represent a year-over-year decline of 1.8%. Simultaneously, our latest consensus estimate expects the revenue to be $14.56 billion, showing a 5.21% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $5.58 per share and a revenue of $53.22 billion, demonstrating changes of +8.98% and +6.54%, respectively, from the preceding year.

Any recent changes to analyst estimates for Oracle should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Oracle possesses a Zacks Rank of #2 (Buy).

Looking at valuation, Oracle is presently trading at a Forward P/E ratio of 22.02. This expresses a discount compared to the average Forward P/E of 28.88 of its industry.

Investors should also note that ORCL has a PEG ratio of 2.27 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.49.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on

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